Optus on track to meet FY forecasts

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Australian telco Optus is on track to meet its full year
forecast after a solid increase in third quarter net profit.

Optus reported a net profit of $A168 million for the three
months to December 31, 2004, a 34 per cent increase on the same
period a year earlier.

Its parent company Singapore Telecommunications Ltd reported an
11 per cent decline in net profit for the quarter to $S760
million.

Optus' operating revenue rose 7.7 per cent in the quarter to
$A1.79 billion while operational earnings before interest, tax,
depreciation and amortisation (EBITDA) grew 12 per cent to $A547
million.

Free cash flow was $A335 million, a 59 per cent rise compared to
the third quarter of 2003/04.

"Optus remains on track to achieve its guidance for the full
year to 31 March 2005 including growing revenues at around twice
the market as a whole, achieving double-digit EBITDA growth and
delivering free cash flow of more than $A1 billion," SingTel
said.

Optus said 79 per cent of its revenue growth came from mobile,
which also contributed 89 per cent of EBITDA growth.

"Despite intensifying competition, Optus was yet again able to
grow more quickly than the market as a whole," Optus chief
executive Paul O'Sullivan, said.